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Global semiconductor revenue rose 1.1% in 2022 to a total of $601.7 billion compared to last year, according to preliminary reports from Gartner.
Memory was the worst-performing device category, accounting for about 25% of semiconductor sales in 2022, showing a 10% decline in revenue. Non-memory revenue grew 5.3% in 2022. Strongest growth came from analog with an increase of 19%, followed closely by discrete ads with an increase of 15%.
Samsung Electronics ( OTCPK:SSNLF ) ( OTCPK:SSNNF ) has a 10.9% market share, while Intel ( INTC ) ranks second with a 9.7% market share.
“2022. began with shortages of many semiconductor devices resulting in extended delivery times and price increases leading to reduced production of electronic equipment for many end markets. As a result, OEMs have started to hedge against shortages by stockpiling chips,” said Andrew Norwood, vice president of analyst at Gartner. “However, by the second half of 2022, the global economy has begun to slow under pressure from high inflation, rising interest rates, higher energy costs and the continuation of the COVID-19 quarantine in China, which has affected many global supply chains. Consumers also began to cut back on spending, with demand for PCs and smartphones suffering, and then businesses began to cut back on spending in anticipation of a global recession, all of which weighed on overall semiconductor growth.”
Separately, smartphone shipments fell 18% in the fourth quarter, the biggest drop in nine years.
The outlook for 2023 also looks dim with a 3% decline expected as the economy worsens and consumer demand weakens.
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Top Semiconductor Names: Intel (INTC); Micron Technology (MU); Texas Instruments (TXN); Qualcomm (QCOM); NXP Semiconductors (NXPI); Microchip technology (MCHP); Applied materials (AMAT); Himself